Answered

If you expect a stock be priced at $80 in one year and pay a dividend of $1.85, what is the most you would be willing to pay for the stock today if you require a return of 13%?

Answer :

khuranashilpa76

Willing to pay for the stock today is  $72.43.

Given values, Dividend = $1.85

                      Price = $80

                      return = 0.13

Formula, Current Price = (Dividend + Price ) / (1 + return )

                                     = (1.85 + 80) / (1+ 0.13)

                                     = $72.43

The number one purpose that buyers personal inventory is to earn a return on their funding. That go back commonly is available in  viable methods: The stock's price appreciates, this means that it is going up. you can then promote the stock for a profit if you'd like.

The very best way to shop for stocks is thru a web stockbroker. After beginning and funding your account, you may buy shares via the broker's internet site in a remember of minutes. Other options encompass the use of a full-provider stockbroker, or shopping for inventory directly from the company.

Learn more about stock here:-

https://brainly.com/question/25818989

#SPJ4

Other Questions